Posted on February 27, 2010 by Carole Somer

When figuring how much of a property to invest in out of town you must allow for an extra 25 percent in deductions to cover the added expenses. Whether you are going to handle the driving back and forth and do all the work yourself or hire a management team, 25% extra is needed. If you figure out how much a management team cost and then figure out how much you are worth or how much your time is worth, you will opt for the management team.

The property will have to be a very good bargain to allow an extra 25%, but in today’s market with foreclosures and bankruptcies, many investors are buying properties for pennies on the dollar. Many banks are turning down loans, even for highly qualified people, so if you have the financial backing of any bank and the cash to purchase what you want, then the doors are open for you all over the world.

CNN wrote an article about banks not granting loans. One out of every 6 people are refused a loan even with good jobs, money in the bank and a high credit score. The banks are afraid of having too many loans and afraid of defaults. 25% of all buyers who make less than $50,000 are being turned down for a loan. So a qualified investor is gold.

So if there is a multi-family investment in another city, definitely check the figures and then do not hesitate.